Loan week

A round up of the latest syndicated loan market news.
Australia

ABC Learning has successfully raised A$530 million via a multi-tranche facility provided by Commonwealth Bank of Australia and Westpac Banking Corp. The loan comprises two three year tranches and a three month portion. Proceeds are for general corporate purposes.

Mandated arrangers BNP Paribas, National Australia Bank and Royal Bank of Scotland have provided a A$370 million 10 year multi-tranche loan to Hope Down Iron Ore on a club basis. National Australia Bank held A$136.7 million while BNP Paribas and Royal Bank of Scotland took A$116.7 million apiece.

Proceeds are to support the development of a mine construction project in the Pilbara region of Western Australia and to provide for general corporate funding requirements.

A A$1 billion multi-tranche fundraising for Sonic Healthcare was signed last week with a syndicate of six banks. Joint lead arrangers ANZ Investment Bank, Commonwealth Bank of Australia, National Australia Bank and Westpac Banking Corp held A$200 million apiece. Lead arrangers are Citibank and Royal Bank of Scotland lending A$100 million each.

The loan is split into a A$300 million 364 day credit, a A$350 million three year facility and a A$350 million five year portion. The deal can be drawn in Australian dollars, New Zealand dollars, US dollars, pounds sterling, Swiss francs or euros. Proceeds are to refinance a A$700 million facility signed in December 2004 and for general corporate purposes.


China

Syndication of Chi Mei Optoelectronics (Ningbo)Æs $180 million five year term loan has closed oversubscribed. Banc of America Securities Asia, Calyon and HSBC are arranging the financing.

A $50 million three year club loan was provided to Compeq Manufacturing (Huizhou) on March 21 by a group of five banks. Mandated lead arrangers China Development Industrial Bank held $15 million while Far Eastern International Bank and Taishin International Bank lent $9.5 million each and Chinatrust Commercial Bank and Industrial Bank of Taiwan took $8 million apiece.

Taiwan parent Compeq Manufacturing is providing a guarantee. Proceeds are to refinance existing debt and to provide for working capital requirements.

The $40 million five year fundraising for Tripod (Wuxi) Electronics is receiving a good response from the market and should complete syndication next week. Calyon, Hang Seng Bank and Sumitomo Mitsui Banking Corp are the mandated lead arrangers.

Sino-ForestÆs $150 million five year credit has secured a $5 million commitment from Chiao Tung Bank. Barclays Capital, Citic Ka Wah Bank, Export Development Canada, Hang Seng Bank and HVB are the mandated lead arrangers. The deal was funded last month but the books remain open as banks gain their credit approvals.


India

Essar SteelÆs $120 million five year financing is progressing in syndication. Barclays Capital and State Bank of India are the bookrunners.

Arab Investment Corp is the latest investor to participate with a $12 million ticket. Export Development Canada and KfW joined earlier.

The $60 million one year facility for Indian Overseas Bank has received a handful of commitments and should complete syndication shortly. Calyon, DBS Bank, Citigroup and Standard Chartered Bank are leading the deal.

The loan is already oversubscribed with at least five banks so far on board. Lloyds TSB Bank and Export-Import Bank of the Republic of China are among those that have joined.

Power Finance CorpÆs $100 million 3.5 year term loan was signed on Tuesday, March 21. The syndicate comprises a total of 21 banks including mandated lead arrangers Calyon, DBS Bank, Mizuho Corporate Bank and State Bank of India.

Syndication of Shyam Kribhco FertilisersÆ Ñ25 billion seven year financing has been completed. Lehman Brothers arranged the deal.

Participating banks include Rabobank Nederland (Singapore), Sumitomo Mitsui Banking Corp (Singapore), ABN AMRO Bank, Chiao Tung Bank (Offshore Banking), Chang Hwa Commercial Bank (Offshore Banking), Chang Hwa Commercial Bank (Singapore), Taiwan Cooperative Bank (Offshore Banking), Hua Nan Commercial Bank (Singapore) and Cathay United Bank (Labuan).

Proceeds are to acquire a urea plant and related facilities of the Shahjahanpur Unit of Oswal Chemical and Fertilisers. Kribhco and Shyam Basic Infrastructure Projects are providing a guarantee.

The $50 million credit for Srei Infrastructure Finance has reached financial close with participation from 11 banks. Signing will be held on March 31.

Mandated lead arranger HSBC held $5 million and arrangers Bumiputra-Commerce Bank (Singapore), China Construction Bank (Hong Kong), Export Development Canada and RZB (Singapore) lent $6.25 million apiece. Joining as co-arrangers are Bank SinoPac, Bank Negara Indonesia (Hong Kong), Chang Hwa Commercial Bank (London) and Indian Bank (Singapore) providing $3.5 million each while senior managers include Korea Development Bank (Singapore) committing $3.5 million and Chiao Tung Bank (Offshore Banking) with a ticket of $2.5 million.

Suzlon Energy has mandated Barclays Capital, Deutsche Bank and ICICI Bank to lead arrange a Ç450 million financing for the acquisition of Eve Holdings, the holding company of Belgian gearbox manufacturer Hansen Transmissions. The borrower is deciding whether to syndicate the transaction or conclude it on a club basis.

Mandated arrangers Calyon and Standard Chartered Bank are set to launch the $60 million three year term loan for Tata Technologies into general syndication. Banks were invited to join in sub-underwriting last month.

The $125 million 364 day yen equivalent fundraising for Union Bank of India was inked last Friday. The loan was substantially oversubscribed but not increased.

Mandated lead arrangers DBS Bank and Lloyds TSB Bank held $11 million each while BNP Paribas, Calyon, DZ Bank and Standard Chartered Bank lent $10 million apiece. Lead arrangers with commitments of $9 million each include Erste Bank and Wachovia Bank.

Joining as co-arrangers are AKA Export Finance Bank and Bank Austria committing $8.5 million apiece and Banca Nazionale del Lavoro, China Construction Bank, Oversea-Chinese Banking Corp and WGZ Bank contributing $5 million each. Lead managers with tickets of $2 million apiece are Banca Monte dei Paschi di Siena, Banca Popolare di Verona e Novara, Sampo Bank and UniCredito Italiano.

Videsh Sanchar NigamÆs $220 million five year term loan has so far received underwriting commitments from Export Development Canada and Bank of Nova Scotia. Calyon and Standard Chartered Bank are leading the facility.

Sub-underwriters earn an all-in yield of 58bp over Libor and top level lead arrangers in general receive 57bp. Responses are due by March 28.
Macau

The $700 million multi-tranche fundraising for MGM Grand Paradise has reached financial close. Banc of America Securities Asia, Banca Nacional Ultramarino, Bank of China (Macau), BNP Paribas, CCB International Finance, HSBC, Royal Bank of Scotland and Sumitomo Mitsui Banking Corp are the mandated lead arrangers.

The facility met with an enthusiastic response from the market and is oversubscribed with 15 banks joining. Proceeds will fund the $975 million development of the MGM Grand Macau hotel-casino resort. Allocations are being finalised.


Malaysia

Mandated arranger DBS Bank is currently syndicating a $36 million five year loan for RB Labuan. The amount can be increased to a ceiling of $50 million in the event of an oversubscription.

The deal features a margin of 135bp over Sibor and banks have until the end of the month to revert.


South Korea

Hana BankÆs Ñ20 billion dual tranche financing was signed on Tuesday, March 21. The facility was heavily oversubscribed but not increased.

Mandated lead arrangers Banc of America, Barclays Capital, BNP Paribas, Calyon, DBS Bank, HSH Nordbank, Mizuho Corporate Bank and Sumitomo Mitsui Banking Corp held Ñ1.25 billion each.

Arrangers include Lloyds TSB Bank lending Ñ1.15 billion, DZ Bank committing Ñ1.1 billion, Dresdner Bank providing Ñ900 million and Fortis Bank, Banca Monte dei Paschi di Siena, Bank of China (Hong Kong), Bank of Montreal and San Paolo IMI contributing Ñ750 million apiece. Co-arrangers are Banque et Caisse dÆEpargne de lÆEtat pledging Ñ800 million, BBVA Hong Kong absorbing Ñ600 million, American Express Bank and Royal Bank of Canada taking Ñ450 million apiece and Banca di Roma and Toronto Dominion Bank lending Ñ400 million each.

Syndication of Hankook Tire HungaryÆs Ç100 million financing has been completed with 13 banks participating. Signing will be held on April 4.

Mandated arranger Korea Development Bank held Ç15 million while co-arrangers include Woori Bank lending Ç13 million, Bayerische Hypo-und Vereinsbank (Hong Kong), Calyon (Seoul), Hana Bank, Korea Exchange Bank Deutscheland and National Agricultural Cooperative Federation committing Ç8 million apiece and Mizuho Corporate Bank (Seoul) providing Ç7 million. Joining as senior managers are BNP Paribas Hungaria Bank, ING Bank (Hungary), KDB Asia, KDB Hong Kong and KDB London with tickets of Ç5 million each.


Taiwan

Asia Vital ComponentsÆ NT$3 billion five year credit has been launched into syndication via mandated arrangers Bank of Taiwan, Chinatrust Commercial Bank, First Commercial Bank and Taiwan Cooperative Bank. AVC International is providing a guarantee.

The margin is 100bp over the CP rate and fees to the market are on two levels. Co-arrangers lending NT$300 million or more gain 5bp and lead managers providing NT$150 million to NT$299 million receive 3bp. There is also a commitment fee of 20bp.

Proceeds are to refinance existing debt and provide for working capital purposes. Responses are due by the end of May.

A NT$190 million 10 year multi-tranche financing for medical products supplier Bioteque Corp was completed earlier this month. Mandated arranger Chiao Tung Bank held NT$95 million while lender Taiwan Business Bank also contributed NT$95 million. Proceeds are for working capital purposes.

Chailease FinanceÆs three year term loan has been increased to NT$3.18 billion from NT$2 billion after a strong response in syndication. Mandated arranger Mizuho Corporate Bank held NT$300 million.

Arranger Hua Nan Commercial Bank joined with a commitment of NT$300 million. Co-arrangers are Chiao Tung Bank, E-Sun Commercial Bank, Farmers Bank of China, Hsinchu International Bank and Taiwan Business with tickets of NT$300 million apiece.

Joining as lead managers are Far Eastern International Bank lending NT$250 million, Bank of Overseas Chinese, Shin Kong Commercial Bank and Taiwan Cooperative Bank providing NT$200 million each, Sunny Bank lending NT$150 million and Hwa Tai Bank with a hold of NT$80 million. Signing will be held next week.

Mandated lead arrangers Mizuho Corporate Bank and Taipei Fubon Commercial Bank have launched the NT$3 billion five year dual tranche facility for Evergreen Marine into syndication.

The loan comprises a term loan and a guarantee facility with the tranche split to be determined upon completion of syndication. The term loan can be drawn in New Taiwan dollars or US dollars and carries a margin of 48bp over the CP rate and 50bp over Libor. The guarantee facility offers a fee of 50bp.

Banks have been invited to join on three levels. Lead arrangers committing NT$500 million or more earn 6bp flat, lead managers contributing NT$300 million to NT$499 million gain 4bp and managers providing NT$200 million NT$299 million receive 2bp. There is also a commitment fee of 12.5bp. Proceeds are to refinance existing debt and for working capital purposes.

First Taisec Securities signed a NT$7 billion three year note issuance facility with a syndicate of 14 banks on Monday, March 20. Mandated arranger Chiao Tung Bank held NT$2.05 billion.

Participating banks are Far Eastern International Bank, Shanghai Commercial & Savings Bank, Tachong Bank, Taipei Fubon Commercial Bank and Union Bank of Taiwan committing NT$500 million each, Farmers Bank of China lending NT$400 million, Sunny Bank of China contributing NT$350 million, Central Trust of China, E-Sun Commercial Bank, Industrial Bank of Taiwan, International Bank of Taipei and International Commercial Bank of China lending NT$300 million apiece and China Development Industrial Bank with a ticket of NT$200 million.

The NT$1.5 billion dual tranche credit for Kuo-Kuang Motor Transport has reached financial close. Mandated arranger Taiwan Cooperative Bank held NT$420 million.

Lenders include Taiwan Business Bank providing NT$225 million, An-Tai Commercial Bank lending NT$180 million, Shanghai Commercial & Savings Bank providing NT$135 million, Bank of Kaohsiung committing NT$105 million, Central Union Trust & Investment, Chang Hwa Commercial Bank, Hua Nan Commercial Bank and Hsinchu International Bank absorbing NT$90 million each and Taipei International Bank with a hold of NT$75 million.

Phoenix Precision TechnologyÆs NT$6 billion five year dual tranche loan has secured a commitment from Central Trust of China. International Commercial Bank of China and Taipei Fubon Commercial Bank are leading the deal.

Mandated arranger Taiwan Cooperative Bank is waiting for the final banks to revert for TatungÆs NT$2 billion five year credit before closing the books. Banks that have so far joined include Cathay United Bank, Central Trust of China and Shanghai Commercial & Savings Bank.

A NT$700 million five year multi-tranche facility for Tong Chen Technology is in the market via mandated arranger Taiwan Cooperative Bank. Ton Yi Industrial Corp is providing a guarantee.

Commitments have so far been received from Chang Hwa Commercial Bank, China Development Industrial Bank, First Commercial Bank, Hua Nan Commercial Bank, Taishin International Bank and Taiwan Business Bank. More investors are expected to join shortly.

The loan is split into a NT$280 million term loan, a NT$210 million portion and a NT$210 million revolving credit. The margin is 158bp over Taiwan Cooperative BankÆs one year floating deposit rate. There is also a commitment fee of 15bp.

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